NKR PRIME MINISTER ANUSHAVAN DANIELIAN’S INTERVIEW …
Azat Artsakh Daily, Republic of Nagorno Karabakh [NKR]
19 March 07
Question: Mr. Prime Minister, it is impossible to drive or walk along
Slava Kasparov, Shirvanzadeh and Mkhitar Sparapet Streets in snow and
rain. Not all the complaints of the inhabitants reach the City
Hall. Please visit the place before you answer this question. The
mayor does not seem to have to have time to visit¦ Residents of
Slava Kasparov, Shirvanzadeh and Mkhitar Sparapet Streets, Stepanakert
(27 signatures) Answer: I have already instructed the relevant
ministries and the City Hall of Stepanakert to attend to this issue
and come up with a proposal to solve this problem. Question:
Mr. Danielian, effective development of agriculture is being often
discussed but there is no progress yet. However, without an effective
irrigation system agriculture will make no progress. What does the
government plan to do, and is it realistic? Kamo Abrahamian,
Martakert region Answer: The creation of an irrigation system, which
is crucial to the development of agriculture, remains in the focus of
attention of the government. Funds have been allocated for this
purpose for three years now. The government intends to improve the
irrigation system through improvement of management of water resources
and construction of reservoirs, as well as to tackle the problem of
water supply in Stepanakert, the regional centers and other
places. For many years water supply in Stepanakert and dozens of other
settlements have been unsatisfactory, let alone the ruined system of
irrigation, which slows down the development of agriculture.
Unfortunately, only 1000 out of 60 thousand hectares of land NKR is
irrigated. In other words, only 5-6 percent of water resources is
used. Stepanakert with a population of 50 thousand gets running water
for one or two hours on every other day. On top of all, the water is
not clean. During the war the water supply system was damaged, but it
does not mean that we are not responsible and we must display a
realistic approach. A survey showed that water resources in our
country are not limited but our rivers and sources quench the thirst
of others ¦ The government has worked out a number of projects with
Armwaterproject. The specialists of this research institute found out
that we can store 95 million cu m water annually and irrigate 21
thousand hectares of land (the reservoir of Sarsang excluding). The
project of diverting the stream of the Trge River to Sarsang is
underway. The Base Metals Company plans to build three mini water
plants on the canal connecting the Trge River with Sarsang, which will
generate 44 million kWh of power annually. The repair of the canal of
the reservoir of the Khachen River, the water pipeline Aygestan-Nor
Maragha, the canals of Bash Arkh, as well as Sovetarkh and Khatunarkh
is over. The construction of the reservoirs on the Karkar River,
Askeran region, the Ishkanaget River, Hadrut region, Khachen, Varanda
and Arakel are of strategic importance. The construction will be
carried out in the upcoming few years. It is foreseen to irrigate 8000
hectares of land by natural pressure from 2010. This year 2 billion
drams will be allocated for this project. Question: Mr. Prime
Minister, in Stepanakert heated debate over the mortgage loan program
is ongoing. Young families are hopeful about this program. I live in
Moscow but my family is interested too. Two months have passed but
there has been no progress yet. Arthur Grigorian, Economist, Moscow
Answer: Improvement of housing remains a priority. The mortgage loan
program required a corresponding legal framework the government
undertook two years ago. 700 million drams was assigned this year for
the mortgage loan program. It should be noted that Nagorno Karabakh
Republic is the only country of the region where the government gives
soft mortgage loans (6 percent interest, 20 years). In the other
countries of the region privately-owned banks offer mortgage loans
with 12-18 percent interest rate for 10-15 years. Presently the
government is working out another social mortgage loan program, which
will be launched in 2008. Question: How do you evaluate the
activities of the banks of our country, and generally our banking
system in liberal economy? Students of Arstakh State University
Answer: A sustainable market economy depends on a sustainable and
predictable financial and banking system. In this connection, the
government makes efforts to create a sustainable banking system. You
know that Nagorno Karabakh and Armenia share their banking
system. Nagorno Karabakh does not have a central bank and does not
conduct a separate policy of upgrading the banking system. It should
be noted, however, that the Armenian banking system is one of the best
in the region. In order to contribute to the development of the
economy, the banks of the republic need to expand their services,
raise the size of loans, upgrade insurance of loan repayment,
especially loans for agriculture, offer long-term loans. It is notable
that as on January 1, 2007 loan investments totaled about 15 billion
drams, which means loan investments have risen 10 times compared with
2000. Besides, in 2006 the ratio of loan investments to the GDP
totaled 24.2 percent compared with 6.7 percent in 2000. Question: On
my recent visit to Stepanakert I noticed considerable progress in
business due to the program of development of small and medium-sized
enterprises. Are these efforts are sufficient to create a favorable
environment for small and medium-sized businesses? Slava Harutiunyan,
Moscow Answer: Since small and medium-sized businesses are very
important to creating new jobs, raising the quality of life, creating
a middle class and sustaining economic, social and political
stability, the NKR government focuses on the development of small and
medium-sized businesses. Over the past few years assistance to small
and medium-sized businesses has been a component of the government’s
economic policy. As a result, the small and medium-sized enterprises
have provides 30 percent of the GDP and created 1500 new jobs. The
economic policy allowed setting up 300 new small and medium-sized
enterprises. In 2006 over 90 were set up, creating about 500
jobs. Over the past 4 years over 2 billion drams has been assigned for
small and medium-sized businesses. 800 million drams was assigned in
2007. Since the resources are limited, but there are human resources,
the government focuses on the development of small and medium-sized
innovative business. This type of business comes after major
businesses in terms of supply of resources but creates excellent
opportunities for the scientific and technological creative resource
and initiatives. The first step has been taken, the bill on government
assistance to innovative activities was presented to the NKR
parliament. Question: Mr. Danielian, creation of new jobs remains
urgent. Is the economic strategy effective in solving this problem? Is
a breakthrough realistic in the upcoming few years? Vladimir
Gasparian, Russia Answer: Creation of new jobs and reduction of
unemployment are considered by the government as essential to raising
the quality of life. It should be noted, however, that besides
unemployment there is also a lack of qualified personnel. Annually
hundreds of specialists are invited to work in different spheres of
the economy of Nagorno Karabakh. For instance, 20 percent of labor
employed in mining is invited. In building it is 25-30 percent, in
agriculture 10-15 percent. The current policy of the government is
directed at filling this gap with the local labor. In 2006 the
government opened a vocational college in Stepanakert to train
qualified personnel. Michael Melkumian, Economist, Russia
Mr. Danielian, I have three questions. Question 1: What efforts does
the government make to tackle unemployment? Particularly, I would like
to know what will be with the silk factory of Stepanakert, more
exactly with what remains from the silk factory. Did the government
carry out a market research to reopen the factory, especially that the
raw material and transportation are not a problem? Besides, silk
factories are highly profitable in Azerbaijan and Uzbekistan¦
Answer: I think you know that in the Soviet years the silk factory of
Stepanakert did not produce the final product. You must also know that
the factory was damaged during the war. The premises and the equipment
were damaged. Therefore, the factory is not attractive for
investments. The machines and equipment which were not damaged are
stored in one of the buildings of the factory, and the factory will be
included in the privatization plan. Question 2: What causes the high
rate of cancer in the country? Was monitoring of water, air and
radiation carried out? Answer: The rate of cancer grows in the world
and NKR, but it is not as high as you said. It is the same as in
Armenia. In addition, the rate rose because of the early detection of
cancer thanks to new methods and equipment for diagnosis. The factor
of the post-war stress may also cause the rate of cancer to go up. As
to monitoring of water, air and radiation, no tests were done in
Nagorno Karabakh. Question 3: Water flows from the reservoir of
Sarsang to Azerbaijan and is used for irrigation. It could be a lever
for pressure on the foe. If we cannot use the natural wealth, maybe we
should not allow watter to flow to Azerbaijan, especially in the
period when it needs it. I think we should not feel ashamed. Answer:
One of the core policies implemented by the government is the
effective use of water resources and the improvement of water supply
and irrigation systems. This policy will allow using water resources
effectively and supplying the demand. The repair of a few canals is
over, other programs are underway. The diverting of the flow of the
Trge River will enable irrigating an additional 1650 hectares of
land. As to ` not allowing’, it will cost several million dollars
which had better been spent on the irrigation system in NKR. Question:
Mr. Prime Minister, I suffer from heart disease and high blood
pressure. In February 2005 I underwent surgery in Yerevan. I had
breast cancer. After the operation I turned to the hospital of Martuni
for 2nd degree of disability certificate but I was refused and
explained that pensioners are not given 2nd degree disability
certificate from 2004. I turned to the NKR ministries of health and
social security, I was told the same. My pension is not enough to buy
medicine, and we have no other source of income. I am 73, my husband
is 82. He is also sick. Could you tell me how I am supposed exist on
my pension, which is not enough to buy medicine? Younger patients
work and get free medicine because they have 2nd degree of disability,
whereas medicine aid to pensioners was cancelled in 2004. Why do the
ministries of health and social security cancel the decision of the
government? Arshaluis Socrat Mukanian Martuni, NKR Answer: According
to a joint decision of the NKR ministries of health and social
security, pensioners are granted 2nd degree disability if they cannot
do without others’ help and care due to malfunctions of the
body. Besides, according to the December 29, 2005 decision of the NKR
government, pensioners who do not work get 30 percent discount on
medicine. Question: Mr. Prime Minister. The Armenian refugees who are
ignored by the international community are worried about an important
problem. What efforts are made for resettlement in Nagorno Karabakh,
and what will happen to the families who will decide to return home?
Babken Chagharian, Georgievsk, Russia Answer: All the Armenian
families who want to return to live in NKR are welcome. Considering
the necessity to reconstruct and settle the areas destroyed by the
war, the resettlement is regulated by a series of decisions of the NKR
government. These documents are of vital importance for the refugees
living in Armenia, citizens of the CIS and other states who want to
move to NKR. After the war thousands of families moved to live in
NKR. By Decision 121 of the NKR government adopted on April 15, 2003
the families which migrate to NKR are provided with an apartment or a
house, one time aid, which is the basic salary 20 times to the head of
the family and the basic salary 5 times to every member of the
family. Travel expenses and the expenses of transportation of the
property are also covered by the government. 5 thousand drams is
provided for travel of each member and 15 thousand drams for
transportation of the property. I should note that the migrants get a
long-term loan with 0.5 percent interest for 10 years for their
everyday needs. The migrants do not have to pay for communal services
for five years, military service of newly-wed young men of
conscription age is delayed for two years. There are other benefits as
well. In short, we make efforts to create conditions for migrants and
this strategic issue is the focus of the government policies. I should
note that 241 families migrated to NKR in 2006, all in all 872 people
migrated to NKR, including 395 children. Question: Mr. Danielian, we
learn about progress in Nagorno Karabakh from the website of the Azat
Artsakh Newspaper. However, it is interesting to know your
opinion. How would you describe the results of the past year? Are they
satisfactory? What are your expectations from 2007? Hamlet Balian,
Krivoy Rog Answer: Social and economic achievements of the past few
years in NKR are thanks to internal political stability, as well as
structural and institutional reforms. I believe that thanks to these
reforms we managed to stop decline in industry and ensure a high rate
of economic growth evidence to which is continuous improvement of
economic and social indices. In 2000-2006 the average annual growth of
the GDP was 11.9 percent. In 2006 the GDP was 62 billion drams,
rising by 10.1 percent compared with the previous year. In 2005 the
GDP doubled compared with 2002, and in 2006 it doubled compared with
2003. In 2006 the GDP per capita totaled 1080 U.S. dollars, rising
3.4 times compared with 2000. In 2006 the volume of production was
24.2 billion drams, rising 5 times compared with 2000. In 2000-2006
the average growth of industry totaled 27.2 percent. The gross
agricultural output in 2006 was 20.7 billion drams, rising 1.5 times
compared with 2000. Over the past years building tends to grow. In
2000-2006 the average annual growth of this branch was 13.2
percent. In 2006 the volume of building totaled 17.6 percent going up
2.4 times compared with 2000. Exports totaled 45 million U.S. dollars
rising 22 times against 2000. The economic growth is reflected in the
income of the population. In 2006 the income of the population
exceeded the level of 2000 2.5 times. Over the past few years the
average annual growth of the income of the population totaled 18.6
percent. The average monthly wage reached 56683 drams, doubling
against 2000. The financial state of the country has improved
considerably. Over the past 4 years the average annual growth of
budget receipts totaled 43.2 percent. In 2006 state budget receipts
totaled 9.4 billion drams compared with 2.2 billion drams in 2000. In
2006 the ratio of the budget receipts to the GDP totaled 15.2 percent
compared with 9.5 percent in 2000. It is notable that the economic
policy allowed creating over 2000 jobs in 2000-2006. In 2007 the GDP
will total 69.5 billion drams, with an 11 percent growth. The
government expects to raise the GDP up to 100 billion drams by
2010. Budget receipts are expected to reach 11.5 billion drams in
2007. The economic growth and effective tax administration will
sustain this growth. The social and economic policy and the
achievements of the past years let hope that the upcoming years will
favor economic growth and solution of social problems.
AA.
19-03-2007
From: Emil Lazarian | Ararat NewsPress